Building something of significant value to the student, but shifting the risk away from the student to your company or the current or future employer is the way to build a very large education company. Prenda does this for parents in K12 by serving as a public charter school, Lambda does this for students by deferring tuition until they get a job.

Millions of families struggle to find high-quality daycare, even though they’re willing to pay high prices: on average, more than $9,500 a year, according to a 2016 report. It’s an opportunity entrepreneurs and venture capitalists have lately picked up on, with the media paying plenty of attention.